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"In many companies, the relationship between IT and business leaders is a very troubled marriage indeed. Miscommunication is rife, leaving executives struggling to figure out what's working for the company, what's not, and how to improve the situation. Can a marriage like this be saved?"
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The first step in fixing the situation was to understand exactly what IT costs and performance really were, not just what they seemed to be.
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The key in bridging the gap is for IT leaders to explain clearly the reasoning behind saying "no." If they give the business side enough insight, future requests might even be more reasonable.
"Part of the reason is simply a function of how difficult it is to do two things well at once — successfully managing the existing business and exploring a new direction. “Although many executives recognize the need to exploit current capabilities while developing new ones, few are very effective at managing this conflicting set of activities,” Johnson, Yip and Hensmans write. "
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Propositions that may once have been true almost always become less true or even false over time. Market tastes and preferences change. Technology makes new things possible. Values and features customers once found attractive lose their luster. Companies steal ideas from successful competitors. Pioneering practices become best practices, which in turn become accepted standards. The playing field is forever being leveled. Thus, there is an ongoing need for thoughtfulness, reflection, experimentation and discover
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However, one thing that is universal about Lego’s experience is that the company had to change to develop a new way of doing business; historically a very private company, Lego had to become much more open to outside ideas to innovate effectively with its communities of adult fans.
"Summary: Designing quality business strategy that realizes the power of modern technologies requires alignment with traditional business values; the siren song of projected futurism can look embarrassingly naive in hindsight"
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At the heart of Drucker’s thinking was the concept of ‘Management by objectives‘ (MBO), a process of defining objectives within an organization so that management and employees are aware of and agree to them and understand what they need to do.
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Dion Hinchcliffe (who is currently a VP at ‘Social Business’ consulting firm Dachis Group, where I was briefly a partner a couple of years ago) calls social media in the workplace “viable and valuable“, while Dennis Howlett (who comes at the topic more from a bean counter and Enterprise Resource Planning perspective) dismisses it as “laughable, even ridiculous“. The live voting is currently 78% positive on the topic as I write this.
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"In the context of internal collaboration specifically, this report from Charlene Li at The Altimeter Group illustrates just how insufficient the progress has been for general purpose social business in the enterprise. And when you benchmark the technology category of social business software (that includes employee, customer and partner engagement) against say CRM, or BI or ERP, its even more striking how nascent the sector is compared to its predecessors. "
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To be fair, there is realized benefit but given all the options in Fig 5, you would expect to see at least some categories get a “significant impact” rating, six years after Professor Andrew McAfee coined the term Enterprise 2.0 which laid the groundwork for new approaches to connect enterprises.
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"Le thème de l'innovation sociale est apparu dans les années 1960, porté par des théoriciens du management comme Peter Drucker ou des entrepreneurs sociaux comme Michael Young, le fondateur d'Open University. Mais il n'a vraiment pris son essor que depuis une dizaine d'années, en redessinant la frontière parfois floue entre entreprise et société civile, l'une s'inspirant de l'autre et réciproquement."
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Depuis longtemps les modèles d’affaires et de management se sont haussés au niveau de l’innovation technologique. L’art d’organiser les hommes, de jouer de leurs interactions, est au cœur de la création de valeur. Certains économistes vont plus loin, en se demandant si l’innovation sociale ne jouera pas demain un rôle comparable.
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James Taylor la définissait en 1970 comme “de nouvelles façons de faire les choses dans le but de répondre à des besoins sociaux”. Cela peut tenter deux types d’acteurs: les militants et, comme chez Schumpeter, les entrepreneurs.
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"“If you want your Enterprise 2.0 efforts to be successful, you have to use words other people understand and care about.”
She went on to say that instead of talking about social media, social business, building communities and why your organization needs to use blogs, wikis, and microblogging, you should be talking about increasing sales, increasing productivity, and cutting costs. If you’re talking with Director of HR, he doesn’t care that you are managing 100 new communities or that 1,000 Yammer messages were posted today. He wants to know if the attrition rates are going down or that new employees are getting acclimated more quickly. For you, building communities might be the goal. For him, those communities don’t mean anything unless they can help him reach his goals."
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This about much more than what words to use. It’s about integrating the use of Enterprise 2.0 tools into the actual business. It’s about realizing that these tools are a means to an end, not the end itself. It’s about understanding that a social business community that isn’t tied to actual business goals isn’t sustainable.
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This is where the Enterprise 2.0 industry finds itself today.You’ve brought social tools to your Intranet? You’ve created a dozen active, vibrant communities behind your firewall? That’s great, but don’t go patting yourself on the back too much. Now, let’s drive it deeper into the business. If your goal this year was to bring Enterprise 2.0 to your organization, your goal for next year should be to integrate those tools into one or more of your business units.
"Le constat de Karim Bahloul, directeur des études et de la recherche chez IDC, à Paris, n’est pas très brillant. Tout part d’une étude sur la question de la transformation visant notamment à comprendre comment les directions métiers et les DSI se comportent, ensemble. Pour mener cette étude, le cabinet a interrogé indépendamment 83 directeurs métiers et 83 DSI d’entreprises de plus de 1000 salariés. Résultats : «les DSI sont très techno-centriques, pas du tout centrées sur les désidératas des directions métiers.» Dès lors, la suite semble presque couler de source : les directions métiers affichent « des niveaux de satisfaction relativement faibles sur un certain nombre de points comme la réactivité de l’IT par rapport à leurs besoins,"
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divisions IT «ont un historique, une latence, une organisation interne qui peuvent être un frein. Dans 60 à 65 % des entreprises, le niveau de satisfaction est relativement faible malgré une forte reconnaissance de la qualité de l’offre technologique de l’IT »
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75 à 85 % des budgets IT sont dépensés pour l’exploitation de l’existant. Seuls les 15 à 25 % restants sont consacrés au développement de nouvelles applications ou de projets innovants.»
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""The New Normal" c'est l'histoire d'un monde dans lequel le fait que les choses soient digitales sera juste... normal! Avec la digitalisation de nos musiques, livres, échanges,... il arrive un moment où la norme devient le digital. Et à partir de là de nouvelles règles entrent en jeu et des principes qui étaient des évidences deviennent obsolètes"
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La première règle est la tolérance zéro pour le dysfonctionnement numérique.
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La première règle est la tolérance zéro pour le dysfonctionnement numérique.
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""No one here is hounding me for the ROI".
That’s the last sentence in "(Like) + (Retweet) = $$$?" an article from the July issue of FastCompany. The article is about the ROI of social media; from Likes, to Tweets, to contests to Social Business Software.
Here’s what I have to say about that quote: YIKES!
The article includes quotes from senior marketing executives from Audi, Home Depot and Sephora (who provided the one above), saying in essence that they have no idea about the value of their company's social media activities and investments. Worse yet, these executives indicate that no one is really asking them to demonstrate the ROI."
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This inability to show the ROI from marketing is a main reason why the average tenure of a CMO is under 24 months, which is less than half that of a typical CEO.
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Maybe the issue is we as marketers have forgotten how to do statistical correlations, don't get six sigma, can't be bothered with AB testing, or are not maniacal about numbers
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"Programs like Twitter, Facebook and LinkedIn have become a popular way for families and groups of friends (or groups of strangers) to share information and organize their lives. Now corporations are hoping they can tap into those capabilities as a way to improve employee productivity, collaboration and communication on the job -- and a long line of software vendors, such as Cisco, SAP, Oracle, Microsoft, IBM and Salesforce.com, along with upstarts like Yammer, are hoping to position themselves as the platform to integrate social networking and business processes.
But will it work? And is it worth it?"
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"Clearly, social media has revolutionized how human beings interact," says Kendall Whitehouse, director of new media at Wharton. "It's logical to ask how it can transform internal business processes.
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Wharton management professor Nancy Rothbard says the introduction of social networking into office culture could have "profound" implications for the way businesses are structured. "The benefit of social networking is that it creates communities, but it creates a very different kind of community than offline communities,"
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"Some people think that "social computing" in the workplace is a camel's-nose concession to frivolity. They hear "social" and think they're hearing the opposite of "business" (as in, "it's a social occasion") or the opposite of "significant" (as in, "just a social acquaintance"). They're wrong.
The opposite of "social" is "antisocial" – and it's time to replace antisocial IT with something that knows how to behave like a useful and valued colleague."
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When a person is said to be antisocial, it means we'll get grudging and disagreeable responses to our requests. It means we can't hope for thoughtful notice of facts or events that might be important to us. It means little ability, or inclination, to start or maintain a conversation based on current events or shared interests. These are exactly the characteristics of old-model IT.
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We need something better: something that tells us when something has happened that there's reason to think would interest us
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"Adding "social" as a layer onto a rigid structure created pre-IT will never do it. E 2.0 or it's new name, "social business", is commendable but a blind alley, you have to focus on bettering the core mechanism instead. The core mechanism that allows and executes "a series of actions or steps taken in order to achieve a particular end by working with someone to produce or create something". (That was the definition of Process and Collaboration baked into one sentence.)"
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What's needed is a proper process framework where a trade, a business opportunity can be handled in a proper sequential way as it should, involving the people that can add value in a dynamic and effective manner.
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But "business" is inherently unpredictable, Barely Repeatable at it's core. So no linear process tool can model it, only parts of it, and that long after the business has been established.
"Today, much of the promise and fulfillment of the E2.0 vision is centers around generalized benefits of knowledge sharing and collaboration. We're talking about implementation of micro-blogs, wikis and enterprise search in corporate life. However, as long as the promise of E2.0 is captured in terms of generalized benefits, it will be viewed as peripheral and discretionary, rather than centrally important to the business. Guess what else - when times are tough, it will be at the front of the line at the CFO's office, subject to budget cutbacks. So what's next for E2.0?
For E2.0 to move into the realm of being business critical, three things have to happen -"
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Instead of pitching E2.0 as a means to improving collaboration and communication, it needs to be viewed as critically enabling specific business workflow patterns within an organization.
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Move from back-office knowledge sharing to front-office revenue generating.
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"The tangible tools of Social Business play host to delicate and contextual surfaces – all aimed at getting work done. People call these tools social software. The important thing here is “things” to get “work done”. This means that we must think hard about what a forum or twitter-clone in the enterprise actually is, and why it’s needed. Otherwise, we risk owning an expensive garage with all the wrong tools. That subject is a diversion to this post. One way to solve our problem is to address common business verbs."
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What if we can provide activity updates which use the natural language of everyday business? Forget liking, disliking, bookmarking and all these foreign sounding words. Imagine an activity feed which uses business verbs, gathered implicitly or explicitly from pointing, clicking and typing.
"Transforming business to a networked environment is mostly about changing business culture to become more social and connected but it doesn't mean that specific tools aren't needed to support that transformation. Two things come together to create great change, technology and culture. The social web is a driving force that is empowering people to change business culture and forcing people back to the center of activity in the enterprise."
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To create a next generation enterprise, businesses need to take two concepts from the social web and apply them across all business functions, community / network and content / social media.
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. With process at the center of the design people-based collaboration was not possible in the system, instead the focus was on file-centric activities. Process, file-centricity, workflow driven systems are too rigid and are not focused on the activities that a networked business in the information era needs to carry out business in a flexible and ad hoc global hyper-connected ecosystem.
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"Some refer to this position as a Chief Social Media Officer. I don’t think the social business evangelist necessarily needs a specific title, but I do believe the person to shepherd social business possesses five characteristics.
* Passion for the business
* Appreciation for the organization’s cultural heritage
* Limitless determination and stamina
* Ability to influence
* Skills to maneuver the political landscape"
"If you want to be proactive with regards to the Hyper-Social shift, you need to evaluate which part f your business would benefit the most from becoming social. In doing that exercise, you will quickly realize that you can reduce transaction costs and improve efficiency by making most business processes social.
Scary? Yes. Inevitable? You bet!
In trying to look at all aspects of your business and how it might be affected by hyper-sociality, we started the table below. If you get a chance, look it over and let us know what you think. Did we miss processes that would benefit from going social? Did we exaggerate the impact of hyper-sociality on others?"
While these perceptions are typically not found at the top of IT or business organizations, they are prevalent in the trenches where the work gets done. And they need to be addressed. Without effective internal collaboration between IT and the rest of the business, technology will continue to be underutilized and the potential under-realized. How, for example, can companies leverage collaborative technologies when the teams tasked with exploiting the tools have difficulty collaborating?
IT projects need define a combine the engineering work to be done and the results that they create. Doing so requires more than giving the project a business based name. Here are a few steps for an alternative way to define an IT project.
Combining these three ideas, when companies pay to execute a project, it’s not the project they want, it’s the result. They want more revenue generating customer relationships, not processes around a CRM system or even the capability to look up customer names. What they want is the result.
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First, companies don’t pay for activities, they pay for results. As explains in the blog post http://blogs.gartner.com/mark_mcdonald/2009/06/30/activities-vs-results—the-difference-makes-all-the-difference/From this post.
Second, those results come from changing capabilities which are a more powerful definition of the business. So it’s the capability people want. http://blogs.gartner.com/mark_mcdonald/2009/07/02/capability-is-more-powerful-than-process/
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Results can be defined in the following ways:
The blogosphere moves quickly. You can find many excellent summaries of the events of the 2009 Enterprise 2.0 conference in Boston. But only now are more reflective posts emerging. What is the point of Enterprise 2.0? Can its benefits be measured?
Michael Krigsman started things by writing about the Kumbaya effect. The opportunities for better communication and collaboration afforded by Enterprise 2.0 technologies are interesting, but are they valuable?
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So maybe we should consider Enterprise 2.0 a movement, a management style, or a vibe, instead of something intrinsic to the way business will be done in the future.
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So maybe the right thing to do, if you believe in E2.0, is to engage directly with knowledge workers themselves. Maybe the business of Enterprise 2.0 is not about selling the CEO, CIO, or IT director on the merits of transparency, immediacy, and authenticity. Maybe it’s about winning the hearts and minds of business professionals with tools that make their work easier.
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